Terry White, Adobe InDesign guru says:
Get rounded rectangles with Corner Effects
Stop looking for the rectangle with rounded corners tool. It’s not there. Create your rectangle frame with the regular rectangle tool and then choose Corner Effects from the Object menu. From this dialog box you can choose Rounded from the pop-up menu and then the amount of roundness you want in Size. Be sure to click the Preview check box so that you can see it as you do it.
Download a PDF of tips and tricks from Terry here.
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